Outcome appears closer to truce than durable peace but outline of broader diplomatic relationship is visible Five key takeaways from Trump-Xi meeting When Donald Trump launched his trade war against China in April, threatening tariffs as high as 145%, the Chinese government said it would never bow to blackmail and vowed to “fight to the end”. The question now is whether the consensus reached between Trump and Xi Jinping in Busan, South Korea, on Thursday means that the fight really has come to an end, and if so on whose…
Tag: International trade
Five key takeaways from Donald Trump’s meeting with Xi Jinping
As Donald Trump flew out of Busan airport in South Korea after his meeting with China’s Xi Jinping, the US president sounded upbeat about progress made during less than two hours of talks. Trump discussed the outcome of the meeting, which he described as a 12 on a scale of one to 10, with “an outstanding group of decisions made”. He added: “We’ve come to a conclusion on many important points.” A Chinese statement quoted Xi saying the two countries had “good prospects for cooperation”, and relations had maintained “overall…
US and China agree ‘framework’ for trade deal ahead of Xi-Trump meeting
The US and China have agreed a framework for a trade deal just days before Donald Trump and Chines president Xi Jinping are due to meet. Treasury secretary Scott Bessent said the agreement, forged on the sidelines of the Association of south-east Asian Nations (Asean) summit in Malaysia on Sunday, would remove the threat of the imposition of 100% tariffs on Chinese imports starting on 1 November and include “a final deal” on the sale of TikTok in the US. Trump arrived in Malaysia on Sunday for the summit, his…
Trump in Asia: five key questions as US president prepares for diplomatic tour
Donald Trump is about to embark on a tour of Asia that many hope will ease trade tensions with countries in the region and repair damaged ties with China. Trump will begin his trip on Sunday at a meeting of south-east Asian nations in Malaysia, before flying to Japan to meet its new prime minister, Sanae Takaichi, early next week. But the most important stop on his itinerary will come at the end of the month, when he is expected to discuss trade, and possibly Taiwan, with Chinese leader Xi…
Volvo and VW say Dutch takeover of Chinese chipmaker could halt car factories
Car companies across Europe and Japan including Volvo, Honda and Nissan, have warned that the Dutch takeover of a Chinese-owned chip manufacturer could hit production at factories. Last week’s decision by the Netherlands government to take control of Nexperia has sent shock waves around the auto industry, which is already facing potential shortages in products such as magnets amid China’s latest restrictions on rare earths exports. The Japan Automobile Manufacturers Association, whose members include Nissan, Toyota, Honda and Mazda, said on Thursday it had received a warning from Nexperia that…
China’s economic growth slows amid Trump tariff war and property woes
China’s economy grew at its slowest pace in a year in the latest quarter amid a trade war with the US and long-running woes in its property market. Fragile domestic demand has left China’s economy heavily reliant on manufacturing and trade, at a time of mounting tensions with the Donald Trump administration. GDP rose by 4.8% year on year between July and September, down from the second-quarter growth rate of 5.2%. It expanded by 1.1% in the third quarter compared with the second, the same as the revised growth rate…
What could a Trump deal on critical minerals mean for Australia – and could MAGA be a sticking point?
Australia’s rich deposits of minerals used for green energy technologies and military hardware are increasingly prized, especially because of rising anxiety about China’s stranglehold on the global supply chain. That anxiety escalated after Beijing imposed new restrictions on rare earths exports, prompting a furious rebuke from Donald Trump and a warning from his treasury secretary that western allies would need to “decouple” from China if it proved an unreliable supplier. The timing of the latest US-China trade conflict could be good for Anthony Albanese, who will arrive at next week’s…
US may take strategic stakes in rare earths companies to tackle China ‘power grab’
The Trump administration has criticised China’s increased restrictions on rare earth exports as a threat to global supply chains, and said it would seek to tighten control over strategic sectors by taking more stakes in key companies to counter Beijing. Treasury secretary Scott Bessent told an event on Wednesday that China’s dramatic new restrictions on rare earth minerals and magnets demonstrated the need for the US to be self-sufficient in critical materials or rely more on trusted allies. He later characterised Beijing’s rare earth export curbs as “China versus the…
Shein warns on Trump tariff uncertainty after profits slip
Shein has reported a 20% rise in global revenues to $37bn (£27.7bn) but profits have fallen as the fast-fashion retailer faced increased costs, even before it felt the impact of recent changes to US tax laws. The Singaporean parent company of the rapidly growing retailer said pre-tax profits had fallen by 13% to $1.3bn last year from $1.5bn in 2023 after an increase in selling and marketing costs, according to new accounts. Shein is thought to be trying to list on the Hong Kong stock exchange after efforts to list…
Markets rebound amid latest US-China tariff spat as traders look to possible ‘Taco trade’
Global stock markets have edged higher and cryptocurrencies rebounded amid signs that a new front in the US-China trade war may not be as severe as first feared. Tensions between Washington and Beijing escalated again on Friday and over the weekend, as Donald Trump threatened to impose additional US tariffs of 100% on China starting next month. The US president accused the country of “very hostile” moves to restrict exports of rare-earth minerals needed for American industry. Beijing said it would retaliate if Trump did not back down. However, Trump…